Fitch Rates Ecuador's New Bond Issue 'B(EXP)'

June 13, 2014 03:43 PM Eastern Daylight Time

NEW YORK--(BUSINESS WIRE)--Fitch Ratings has assigned Ecuador's forthcoming USD-denominated global
bonds an expected rating of 'B(EXP)'. The final rating is contingent on
the receipt of final documentation conforming to information already
received. The expected rating is in line with Ecuador's Long-Term
Foreign Currency Issuer Default Rating (IDR) of 'B'/Stable Outlook.

The proceeds will be used for budgetary purposes in terms of government
programs and infrastructure. Ecuador is returning to the international
capital market after the 2008 default and for the first time since 2005.

KEY RATING DRIVERS

Ecuador's ratings reflect the country's continued growth, monetary and
financial stability underpinned by dollarization, and a steady easing of
external and fiscal financing risks as a result of still favorable
international oil prices, improved prospects in the oil sector, and
continued availability of bilateral financing from China and
multilaterals.

Ecuador's creditworthiness balances the sovereign's relatively strong
fiscal and external solvency ratios and high GDP per capita in relation
to peers against key credit weaknesses such as a weak record of debt
service, high commodity dependence, and limited sources of financing for
the sovereign and the economy.

RATING SENSITIVITIES

The rating would be sensitive to any changes in Ecuador's long-term
foreign currency IDR. Fitch upgraded Ecuador's ratings to 'B' with a
Stable Outlook on Oct. 18 2013.

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